Artificial Intelligence, Change Leadership, and Employee Performance: Evidence from BUMN KCPs in Surakarta

Abstract : In the era of digital transformation, the adoption of Artificial Intelligence (AI) in the banking industry presents opportunities to increase efficiency as well as challenges in the form of concerns about the replacement of human roles by technology. This condition has the potential to affect employee performance and work attachment if not managed properly. This study aims to analyze the influence of Artificial Intelligence on Employee Performance and Job Attachment, as well as test the role of Change Leadership as a moderation variable in the context of state-owned banking. The quantitative approach was used by collecting data through a Google Form-based questionnaire which was distributed online and offline to 225 employees from 12 sub-branch offices of state-owned banks in the city of Surakarta. Respondents were selected using the probability cluster sampling technique. Data analysis was carried out using the Structural Equation Modeling method based on Partial Least Squares (SEM-PLS). The results of the study show that Artificial Intelligence has a positive but not significant effect on Employee Performance and Work Attachment. Then, the role of Change Leadership was found to be able to strengthen the influence of Artificial Intelligence on Employee Performance and Work Attachment, which emphasizes the importance of adaptive leadership in managing technological change. Theoretically, these findings enrich the perspective of Dynamic Capabilities theory by showing that the synergy between technology and change leadership shapes the ability of organizations to adapt in a digital environment. Practically, this research provides implications for the banking industry in optimizing the use of AI through adaptive leadership to improve employee performance and engagement in a sustainable manner.